Today, President Trump is expected to sign a congressional resolution of disapproval against a Consumer Financial Protection Bureau rule curtailing binding arbitration, a common form of dispute resolution used in financial contracts. Competitive Enterprise Institute Vice President for Strategy Iain Murray explained how consumers will now be spared the negative impact of the rule and why Congress should take the next step of voting down the CFPB rule against payday loans.
Consumers can thank the President and Congress for stopping a regulation that would have driven up the cost of getting credit. Using impartial, third-party arbitration as a cost-effective form of dispute resolution keeps access to credit open and affordable. The next step for Congress is to disapprove the CFPB’s even more egregious rule against small dollar loans, which will kill access to needed credit for millions of less well-off Americans.
- Senate Stops Harmful CFPB Arbitration Ban
- Congress Can Rescind the CFPB’s Gift to Trial Lawyers
- Consumers Harmed by Consumer Financial Protection Bureau – Again
- Fix Payday Loans with More Competition